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Production and Costs

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13 views2 pages

Production and Costs

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265manishjain
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Production and Costs

Mayank Dua | Micro Economics - XI

Q1. Multiple Choice Questions (1 Mark Each)

1. In the short run TPP changes with the change in which of the following factors

a) Economic cost

b) Fixed factors

c) All the factors

d) Variable factors

2. How is TPP derived from MPP?

a) Cumulative addition

b) Cumulative subtraction

c) Cumulative product

d) Cumulative division

3. The general shape of TPP in the short run is

a) Inverse U shaped

b) U shaped

c) Hyperbola

d) V- shaped

4. Production function shows technical relationship between physical inputs and output of a commodity

a) Technological relationship between inputs and cost

b) Economic relationship between inputs and output

c) Technological relationship between inputs and output

d) Technological relationship between inputs and price


5. Which is the correct example of a production function? (Consider Q = quantity of output, K = capital and L =
labor)

a) Q = K + L

b) Q = ��

c) Q = min (K, L)

d) All are correct

Q2. Answer the following questions (1 Mark Each)

1. What is meant by production?

2. What will be the MP when TP is maximum?

3. When there are diminishing returns to a factor, total product always decreases.

4. TPP increases only when MPP increases.

5. Increase in TPP always indicates that there are increasing returns to a factor.

6. When there are diminishing returns to a factor, marginal and total product always fall.

Q3. Answer the following questions (3 Mark Each)

1. What are Returns to a Factor? What do you mean by the Law of Diminishing Returns?

2. What is the change in quantity demanded?

3. What is the change in demand?

Q4. Answer the following questions (4 Mark Each)

1. Explain the relation between AC and MC with the help of a diagram.

2. Define cost concept. What are the different types of costs?

Q5. Answer the following questions (6 Mark Each)

1. Explain the relation between Marginal Cost and Average Variable Cost with the help of diagram.

2. Explain the determinants of supply?

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